In a market that moves from a situation of no trade to a situation where a good is imported, the price of the good _______ and the quantity produced by the domestic industry _______.

Question

Quizplus · Accepted Answer

In a market where a good is imported for the first time, the price of the good will fall due to the increase in supply from the imported good. As a result, the quantity produced by the domestic industry will decrease, as it becomes less competitive in the market.

In a Market That Moves from a Situation of No